BILL NUMBER: SB 574	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Pan

                        FEBRUARY 26, 2015

   An act to amend Section 6254.26 of the Government Code, relating
to public records.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 574, as introduced, Pan. Public records: public investment
funds: disclosure.
    Existing law, the California Public Records Act, requires state
agencies and local agencies to make public records, as defined,
available for inspection, subject to specified criteria, and with
specified exceptions. Existing law excludes from disclosure specified
records of public investment funds, regarding alternative
investments, as defined, unless the information in the records has
already been publicly released by the keeper of the information.
Notwithstanding this exclusion, existing law provides that certain
types of information contained in records regarding alternative
investments in which public investment funds invest are subject to
disclosure under the act, and provides that these records are not to
be considered a trade secret exempt from disclosure.
   This bill would also subject records with those types of
information regarding alternative investments that are in the
constructive possession of, or are otherwise accessible or obtainable
by, a public investment fund to disclosure under the act and require
a public investment fund to obtain and disclose those records.
   By increasing the duties of local public investment funds, this
bill would impose a state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 6254.26 of the Government Code is amended to
read:
   6254.26.  (a) Notwithstanding any provision of this chapter or
other law, the following records regarding alternative investments in
which public investment funds invest shall not be subject to
disclosure pursuant to this chapter, unless the information has
already been publicly released by the keeper of the information:
   (1) Due diligence materials that are proprietary to the public
investment fund or the alternative investment vehicle.
   (2) Quarterly and annual financial statements of alternative
investment vehicles.
   (3) Meeting materials of alternative investment vehicles.
   (4) Records containing information regarding the portfolio
positions in which alternative investment funds invest.
   (5) Capital call and distribution notices.
   (6) Alternative investment agreements and all related documents.
   (b) Notwithstanding subdivision (a), the following information
contained in records described in subdivision (a) regarding
alternative investments in which public investment funds invest shall
be subject to disclosure  shall be obtained and disclosed by a
public investment fund  pursuant to this chapter  , 
and shall not be considered a trade secret exempt from disclosure:
   (1) The name, address, and vintage year of each alternative
investment vehicle.
   (2) The dollar amount of the commitment made to each alternative
investment vehicle by the public investment fund since inception.
   (3) The dollar amount of cash contributions made by the public
investment fund to each alternative investment vehicle since
inception.
   (4) The dollar amount, on a fiscal yearend basis, of cash
distributions received by the public investment fund from each
alternative investment vehicle.
   (5) The dollar amount, on a fiscal yearend basis, of cash
distributions received by the public investment fund plus remaining
value of partnership assets attributable to the public investment
fund's investment in each alternative investment vehicle.
   (6) The net internal rate of return of each alternative investment
vehicle since inception.
   (7) The investment multiple of each alternative investment vehicle
since inception.
   (8) The dollar amount of the total management fees and costs paid
on an annual fiscal yearend basis, by the public investment fund to
each alternative investment vehicle.
   (9) The dollar amount of cash profit received by public investment
funds from each alternative investment vehicle on a fiscal year-end
basis.
   (c) For purposes of this section, the following definitions shall
apply:
   (1) "Alternative investment" means an investment in a private
equity fund, venture fund, hedge fund, or absolute return fund.
   (2) "Alternative investment vehicle" means the limited
partnership, limited liability company, or similar legal structure
through which the public investment fund invests in portfolio
companies.
   (3) "Portfolio positions" means individual portfolio investments
made by the alternative investment vehicles.
   (4) "Public investment fund" means any public pension or
retirement system, and any public endowment or foundation. 
   (5) "Records" includes public records described in Section 6252
and records relating to the conduct of the public's business that are
in the constructive possession of, or otherwise accessible or
obtainable by, a public investment fund. 
  SEC. 2.  If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.